In 2004 Paul Tobias was appointed CEO of Mackinac Financial Corporation (NASDAQ:MFNC). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Paul Tobias’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Mackinac Financial Corporation has a market cap of US$145m, and is paying total annual CEO compensation of US$502k. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$327k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$303k.
Thus we can conclude that Paul Tobias receives more in total compensation than the median of a group of companies in the same market, and of similar size to Mackinac Financial Corporation. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Mackinac Financial, below.
Is Mackinac Financial Corporation Growing?
Mackinac Financial Corporation has increased its earnings per share (EPS) by an average of 3.2% a year, over the last three years (using a line of best fit). It achieved revenue growth of 15% over the last year.
I would argue that the modest growth in revenue is a notable positive. And, while modest, the earnings per share growth is noticeable. So while performance isn’t amazing, we think it really does seem quite respectable.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Mackinac Financial Corporation Been A Good Investment?
Mackinac Financial Corporation has served shareholders reasonably well, with a total return of 32% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
We compared total CEO remuneration at Mackinac Financial Corporation with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Over the last three years returns to investors have been uninspiring, and we would have liked to see stronger business growth. So it’s certainly hard to argue that the CEO is modestly paid, although we don’t see the remuneration as an issue. Whatever your view on compensation, you might want to check if insiders are buying or selling Mackinac Financial shares (free trial).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.